The Student Loan Marketing Association (Sallie Mae) recently provided local lending institutions with $18.6 million in financing support to provide student loans.
"The recent requests to Sallie Mae for assistance from area lenders are indicative of the continued growth in demand for guaranteed student loans," according to Edward A. Fox, the president.
One of the major beneficiaries was the National Bank of Washington, which picked up $3.3 million through the sale of the bank's outstanding student loans to Sallie Mae.
"Through the sale of student loans to Sallie Mae, we gain additional flexibility and are able to continue to offer loans to students throughout the metropolitan area," Ronald Willis, retail lending department manager of the bank, said.
At the State Department Federal Credit Union, which got $200,000 through the sale of outstanding student loans to Sallie Mae, Edward N. Gulli, treasurer-general manager, said: "The sale of the loans to Sallie Mae will assist us in maintaining the availability of our student loan program in a period of rising demand for post secondary educational financing."
In Baltimore, the Union Trust Co. borrowed $10 million to invest in additional student loans, and the Maryland National Bank borrowed $5 million from Sallie Mae for investing in additional student loans.
Since 1973, Sallie Mae, the national secondary market for guaranteed student loans, has providing financing support for more than $282 million in student loans in the local area, and $6.3 billion nationally.